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Moving my German Pension to UK - my options

Long story short, I am 28. I worked in Germany between July 2002 and November 2006. During that time, I had contributory pension scheme and that pension is now worth in excess of €30,000. I found out I can get that cash. I am making plans to have it moved here so I can invest it over here. I am already thinking through my options if and when I am granted that money. Obviously, I will let them pay it into my B&B esavers account in the meantime. But what are my options in the long-term?

(1) Keep it in the esavers account (table-topping 6.4% at the moment) and transfer the yearly ISA allowance into my mini cash ISA each year?

(2)Take out index-linked savings certificate (NS and I), 5 year term and keep renewing that

I am quite clueless about pensions so these were all I could think about. Anyone have any other ideas? Not really looking in stocks etc as I do not want to risk that all that money.

I would be happy to hear ANY input.:D
QUIDCO £2827 paid out since October 2007:D

Comments

  • Cook_County
    Cook_County Posts: 3,087 Forumite
    Part of the Furniture 1,000 Posts
    Have you checked if you will owe UK tax on the pension withdrawal?

    My hunch is no UK tax, but you need to declare it at the least even if it qualifies as a pension under the UK/German tax treaty.
  • Thanks Cook. Who do I contact to ask about taxes etc? I am also wondering if any taxes will not be applicable if I have the pension transferred directly to my new pensions 'holder' (a bit like transferring ISAs). Anywhere I can get free advise without forking out for an IFA?
    QUIDCO £2827 paid out since October 2007:D
  • bumppppppppppppp!
    QUIDCO £2827 paid out since October 2007:D
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    You could try the horse's mouth ;)

    http://www.hmrc.gov.uk/contactus/helplines.htm
    Trying to keep it simple...;)
  • Milarky
    Milarky Posts: 6,356 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    Surely the pension could be worth more left where it is? Is it 'defined benefit' or 'defined contribution'. Aren't you going to need a pukka pension, even if you remain here, covering the four years you spent working there? I don't understand why anyone would want to cash in a pension when they are so young? The money has been put aside for a good purpose and is no doubt growing as well as it would in any other (alternative) investment vehicle.

    Just look at the pension-to-pension transfer options if you really want to do something but Europe has been performing better than the UK just lately and that must say something?
    .....under construction.... COVID is a [discontinued] scam
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    (1) Keep it in the esavers account (table-topping 6.4% at the moment) and transfer the yearly ISA allowance into my mini cash ISA each year?
    (2)Take out index-linked savings certificate (NS and I), 5 year term and keep renewing that

    Those ideas are fine for cash savings but for a pension you need long term investment.So at the least you should also fill up your mini stocks and shares ISA ( 4k a year) as well as the cash ISA.

    Open that second ISA via a discount broker like https://www.h-l. co.uk which rebates charges and has a good selection of the best investment funds and choose a selection of the latter - say 4 x 1k each.
    Trying to keep it simple...;)
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